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Highlights
- Sonoro Gold Corp has successfully closed an oversubscribed non-brokered private placement, raising $875,000 by issuing 17.5 million units.
- Proceeds from the placement will support the development of the Cerro Caliche gold project and general working capital needs.
- The Cerro Caliche project hosts a significant low-sulphidation epithermal vein system with potential for a lucrative open-pit mining operation.
Overview
Sonoro Gold Corp (OTC:SMOFF) has announced the completion of an oversubscribed non-brokered private placement, successfully issuing 17.5 million units at a price of $0.05 per unit. This funding round generated gross proceeds of $875,000, which will be utilized for the ongoing development of the Cerro Caliche gold project in Sonora, Mexico, as well as for general working capital purposes.
Each unit issued in the placement consisted of a common share and a share purchase warrant, allowing holders to purchase an additional share at $0.07 for three years following the closing of the placement. The company incurred finder’s fees amounting to $6,720 and issued 134,000 non-transferable finder’s warrants, also exercisable at $0.07 over a three-year period.
The Cerro Caliche gold project encompasses 1,400 hectares and features a low-sulphidation epithermal vein system with over 25 gold-mineralized zones, primarily located near the surface. As of March 2023, approximately 30% of these zones had been drilled, with a total of 55,360 meters drilled across 498 drill holes and 17 trenches.
In October 2023, Sonoro Gold filed a Preliminary Economic Assessment (PEA) for the Cerro Caliche project, which indicates the potential for a nine-year open-pit heap leach mining operation. The assessment highlighted that, at a gold price of $1,800 per ounce, the project boasts an after-tax net present value discounted at 5% (NPV5) of $47.7 million, along with a 45% internal rate of return (IRR). If the gold price rises to $2,000 per ounce, the NPV5 increases to $77 million, with an IRR of 63%.
This funding and the promising results from the PEA underscore Sonoro Gold’s commitment to advancing the Cerro Caliche project and enhancing its position in the gold mining sector.
